EFF’s Shivambu: Zuma v Gordhan is because of Guptas “moving R2bn to Dubai”

The controversial Gupta family’s war with the Economic Freedom Fighters continues to escalate. Yesterday EFF chief whip Floyd Shivambu issued a powerful statement claiming the politically connected Guptas are the prime reason there is friction between President Jacob Zuma and his recently reappointed Finance Minister Pravin Gordhan. The way Shivambu sees it, the family has already externalised “more than R2bn….of its ill gotten gains” to Dubai without going through exchange control processes. For their part, the Guptas have denied they have an improper relationship with Zuma or have done anything wrong. Last week they publicly threatened to sue anyone who suggests they are leaving SA. The family has enlisted the services of London-based spin doctor Bell Pottinger and its legal associate Schillings, so we assume that the family will soon be issuing summons on the EFF. Or is it just Africa Confidential, which published the original Dubai relocation story, that is being singled out for such special treatment? – Alec Hogg

By Floyd Shivambu*

The Economic Freedom Fighters (EFF) notes media reports about the Guptas offering Deputy Minister of Finance, Mcebisi Jonas, the job of Minister of Finance few weeks before Nhlanhla Nene was fired. The EFF can confirm that the meeting took place and Guptas offered the Deputy Minister the job of Minister of Finance because Guptas are the ones who run affairs of the State under Jacob Zuma’s administration. Guptas run Jacob Zuma’s administration and the sooner those who deployed him realize this the better.

Pravin Gordhan, South Africa's finance minister, right, sits beside Jacob Zuma, South Africa's president, left, before delivering his 2016 budget speech to parliament in Cape Town, South Africa, on Wednesday, Feb. 24, 2016. Gordhan stuck to a pledge to bring down the budget deficit, targeting civil-servant jobs and increasing wealth taxes to stave off a credit-rating downgrade to junk. Photographer: Halden Krog/Bloomberg
File photo: Pravin Gordhan, South Africa’s finance minister, right, sits beside Jacob Zuma, South Africa’s president, left, before delivering his 2016 budget speech to parliament in Cape Town, South Africa. EFF’s Floyd Shivambu says the politically connected Guptas are coming between the President and his FInance Minister. Photographer: Halden Krog/Bloomberg

The EFF said after the appointment of a puppet Minister of Mineral Resources, Mosebenzi Zwane that South Africa has been turned into a Gupta Republic and anyone who still has doubts about this suffers from psychological decay. The Guptas are in charge of South Africa and they are in a business relationship with Jacob Zuma, through his son Duduzane Zuma. All corrupt presidents all over the world use their children to do business, and that is exactly what Jacob Zuma is doing through his son with the assistance of the Guptas.

The EFF is also aware that in their looting, the Guptas have already started to move lots of money out of South Africa to tax havens. It is not rumours or innuendos; the Guptas have already started packing their bags and are in the process of moving their assets to Dubai. The Guptas have moved more than R2 billion of their ill-gotten gains.

It is important however to ensure that the Guptas must abide by the rules and regulations of capital taxation and withdrawal from the country. According to the rules regarding transfer of capital, there is a levy of 10% on all monies moved out of South Africa according to the South African Reserve Bank (SARB) regulations. In case of the Guptas, this will amount to more than R200 million, as a 10% of the R2 billion the Guptas have already moved to Dubai.

Read also: Floyd Shivambu: Here’s why Zuma fired Nene, deployed backbencher Van Rooyen

However, by exploiting their close relationships to the Mr. Jacob Zuma, the Guptas have managed to move R2 billion without paying a cent of levies. The 10% levies waived and it is not clear for what reason. The newly appointed Minister of Finance Pravin Gordhan was made aware of this irregularity amongst many other tax irregularities Mr. Jacob Zuma has allegedly benefited from, hence the covert war between the Mr. Jacob Zuma, South African Revenue Services (SARS) Commissioner Tom Moyane and the Minister of Finance.

The Guptas non-payment of the already moved R2 billion is  the reason why the Minister of Finance does not want any association with the corrupt Gupta family.

The EFF has written letters to all relevant authorities i.e. Commissioner of SARS, Minister of Finance, Governor of the Reserve bank, and Director of the Financial Intelligence to coordinate an investigation into tax irregularities, financial crimes and possible corruption involving Mr. Zuma’s interference into the working of the Reserve Bank.

We warn the Guptas to respect the sovereignty and financial regulation of South Africa, and not treat our country like it’s a lawless nation. We further warn all individuals in the Guptas paycheck, including Mr. Zuma’s son Duduzane, the Minister of Mineral Resources Mosebenzi Zwane, Minister of Home Affairs, and everyone involved, who continues to conduct corrupt practices to protect the Guptas to say, it is imminent that their names will be exposed and submitted to the relevant authorities.

The EFF is fully aware of the Guptas network of corruption in South Africa and will always expose them.

  • Floyd Shivambu is the Chief Whip of the Economic Freedom Fighters political party.